The Governor of the central bank of Japan, Haruhiko Kuroda, questioned Bitcoin’s use case during an interview yesterday, May 27th.
The bank is currently testing a ‘digital yen,’ the digital version of its fiat currency, but remains shaky on the topic of cryptocurrencies.
“Most of the trading is speculative and volatility is extraordinarily high,” Kuroda said, questioning the use of Bitcoin as a means of investment compared to traditional financial assets. “It’s barely used as a means of settlement,” he added.
The comments are similar to those echoed by Federal Reserve Chair Jerome Powell from earlier this year when he said the crypto market is largely a vehicle for speculation.
The BOJ governor’s criticism comes as Bitcoin experienced an over 50% drawdown from its $64,000 all-time high price milestone achieved back in mid-April.
Indeed, several central bankers have taken Bitcoin’s current price wobble as an occasion to slam BTC and cryptocurrencies in general.
Earlier in May, Luis de Guindos, vice president of the European Central Bank also expressed negative sentiments about Bitcoin. He argued that cryptocurrencies had weak fundamentals and did not qualify as a real investment.
Recently, Lars Rohde, governor of Denmark’s central bank, dismissed the possibility of cryptocurrencies posing a threat to central bank autonomy. According to Rohde, big tech and not crypto is the real competitor to gatekeepers of the legacy finance arena.
Source: Cryptoslate, Cointelegraph